Financial Results for the First Quarter Ended January 31, 2021
[Japan GAAP] (Consolidated)
Date:

March 11, 2021

Company Name and Code:

Tomoe Engineering Co., Ltd. and Subsidiaries - 6309
(URL: http://www.tomo-e.co.jp/index_e.html)

Stock exchange listing:

1st Section, Tokyo Stock Exchange

Head Office:5-15, Kitashinagawa 5-chome, Shinagawa-ku, Tokyo, Japan

President:

Hitoshi Yamamoto

Investor Relations Contacts:

Toshiaki Yakura, Director, General Manager of Accounting Division, Tel: (03) 3442-5127

Date to report Quarterly Consolidated Financial Statement: March 16, 2021
Date for Dividend Payment:

Not applicable to this financial quarter

Preparation of Supplementary Explanatory Materials for Quarterly Operating Results: Not preparedBriefing Session for Quarterly Operating Results: Not planned* Any fractional sums less than one million (or one thousand) yen are disregarded
1. Consolidated Financial Data for the First Quarter Ended January 31, 2021
(1) Results of Operation (Consolidated)

Quarter Ended January 31, 2021
Quarter Ended January 31, 2020

(Percent: Change from the same quarter of the previous year)
Net Sales
Operating Income
Ordinary Income
Millions ofMillions ofMillions ofYen
Percent
Yen
Percent
Yen
Percent
10,606
11.4
649
21.6
675
25.0
9,524-6.3
534-9.0
540-9.2

Quarter Ended January 31, 2021
Quarter Ended January 31, 2020

Net Income Attributable toOwners of the Parent
Millions ofYen
Percent497
40.0
355-8.9

Net Income per Share

Fully Diluted Quarterly
Net Income per Share

Yen
49.90
35.65

Yen-(Note) Comprehensive income
First Quarter ended January 31, 2021: 588 million yen (59.2%)

First Quarter ended January 31, 2020: 369 million yen (17.7%)(2) Financial Condition (Consolidated)

Quarter Ended January 31, 2021
Year Ended October 31, 2020

Total Assets (A)(Millions of Yen)
38,99738,438Net Assets (B)(Millions of Yen)
30,012
29,668Net Assets Ratio(B) / (A) (Percent)
77.0
77.2

(Reference) Net assets
First Quarter ended January 31, 2021: 30,012 million yen

Year Ended October 31, 2020: 29,668 million yen

2. Dividend Status(Record Date)
Year Ended October 31, 2020
Year Ending October 31, 2021
Year Ending October 31, 2021
(Prospect)FirstQuarter-Interim
Term
23.50

Annual Dividend (Yen)
ThirdEnd ofQuarter
Fiscal Year
24.50

25.00

(Note) Revisions since the most recently released dividend projection: None-25.00

Annual48.00
50.00

3. Forecast for Earnings for the Year Ending October 31, 2021 (Consolidated)(Percent change from the previous Full Business Year)Net Sales
Operating Income
Ordinary Income(Millions of Yen) (Percent) (Millions of Yen) (Percent) (Millions of Yen) (Percent)
Full Business Year
41,500
5.8
2,080
-8.0
2,080
-9.4
Net Income Attributable to Net Income per ShareOwners of the Parent(Millions of Yen) (Percent)
Yen
Full Business Year
1,4207.3142.31(Note) Revisions since the most recently released dividend projection: None
Notes(1) Significant changes in subsidiaries during this period (changes in specific subsidiaries involving changes in thescope of consolidation): None
Number of new subsidiaries: __(Company names):
Number of eliminated subsidiaries: __(Company names):(2) Adoption of the specific accounting method to create quarterly consolidated financial statements: None
(3) Changes in accounting policies, accounting estimates, and retrospective restatements.
1) Change in accounting policies due to revision of accounting standard: None
2) Other changes than the above 1): None
3) Change in accounting estimates: None
4) Retrospective restatements: None
(4) Number of outstanding shares (Common stock)1) Number of outstanding shares as of quarter-end and year-end (including treasury stocks)
At January 31, 2021: 10,533,200 shares

At October 31, 2020: 10,533,200 shares

2) Number of treasury stocks as of quarter-end and year-end
At January 31, 2021: 554,861 shares

At October 31, 2020: 554,861 shares

3) Number of average shares (accumulated quarterly total)
At January 31, 2021: 9,978,339 shares

At January 31, 2020: 9,978,339 shares*The quarterly earnings report is exempt from the quarterly review by certified public accountant or audit firm.
*Explanations for appropriate use of the earnings forecast and other special instructions
The forward-looking statements such as a forecast of our financial results described herein are based on theinformation currently available to us and certain assumptions that we believe are reasonable. Actual results could differ
materially due to various factors.
Please refer to the Attachments on page 3, (3) [Analysis of Future Forecast on Quarterly Consolidated Earnings
Forecast] of 1. [Qualitative Information on Quarterly Consolidated Operating Results] for the operating results forecast.

Table of Contents (Supporting Data)

1. Qualitative Information on Quarterly Consolidated Operating Results...................................................................2(1) Analysis of Operating Results................................................................................................................................2(2) Analysis of Financial Condition..............................................................................................................................3(3) Analysis of Future Forecast on Quarterly Consolidated Earnings Forecast.......................................................3
2. Quarterly Consolidated Financial Statements and Notes.................................................................................................4(1) Quarterly Consolidated Balance Sheet................................................................................................4(2) Quarterly Consolidated Statement of Income & Quarterly Consolidated Statement of Comprehensive
Income.......................................................................................................................................................................6Quarterly Consolidated Statement of Income.....................................................................................................6Quarterly Consolidated Statement of Comprehensive Income.........................................................................7(3) Notes on Quarterly Consolidated Financial Statements.......................................................................................8(Note for premise of going concern) .................................................................................................8(Notes for significant changes in shareholder’s equity)..........................................................................................8(Segment information).........................................................................................................................811. Qualitative Information on Quarterly Consolidated Operating Results(1) Analysis of Operating Results
During the first quarter consolidated period, Japan’s economy maintained its recovery trend as exports expanded
significantly against the backdrop of several developments, including the ongoing economic recovery overseas in China
and other countries, robust private consumption, and a return to positive growth in capital investment, and the negative
impact from the spread of coronavirus infections appeared to gradually dissipate.

Overseas, China’s economic

recovery continued, and the U.S. economy remained firm, but Europe’s economic growth turned negative.
Given these circumstances, net sales for the Tomoe Engineering Group for the consolidated first quarter increased
11.4% from the same period last year to 10,606 million yen because of increasing sales in both the Machinery &Equipment Business and Chemical Products Business.

From an earnings aspect, operating income was 649

million yen, 12.6% up from the same period last year because of higher income in the Chemical Products Business,while ordinary income came to 675 million yen, 25.0% up from the same period last year. Net income attributable toowners of the parent was 497 million yen, 40.0% up from the same period last year.
Operating results by respective segment were as follows.
(Machinery & Equipment Business)
In the Machinery & Equipment Business, consolidated net sales for the first quarter period were 2,835 million yen, 34.6%
up from the same period last year. Net sales of machinery, equipment and construction for domestic public sector andprivate sector demand were basically unchanged, but net sales of machinery, components and repair services foroverseas markets rose higher, particularly as sales for China expanded.
(Millions of Yen)
Productclassification

Machinery

Equipment andconstruction
works

Components
and repair
services

TOTAL

January, 2021

16

22561

600

January, 2020

155

46556

757

Difference-138-23

5-157

January, 2021

146-455602

January, 2020

273

116

423

813

Difference-126-116

31-210January, 2021

895

0736

1,632

Overseas

January, 2020

64-

471

536

markets

Difference

830

0265

1,096

January, 2021

1,059

22

1,753

2,835

January, 2020

493

162

1,451

2,107

Difference

565

-139

302

728

Public sector

Private sector

TOTAL

With respect to earnings, because of the decline in net sales of machinery, equipment and construction for domestic
public sector demand, tighter gross profit margins on net sales of machinery for overseas markets, and an increase inselling, general and administrative expenses, operating income came to 110 million yen, 20.6% down from the sameperiod one year ago.

2(Chemical Products Business)
In the Chemical Products Business, net sales continued to recover centered on the motor vehicles sector, which wasaffected severely by the coronavirus pandemic during the second half of last year. On the other hand, net sales ofmaterials for motor vehicles in the industrial materials sector, materials and additives for paint and ink applications in thefine chemical products sector, and materials for semiconductor manufacturing devices in the electronic materials sector
increased. As a result, consolidated net sales for the quarter were 7,770 million yen, 4.8% up from the same period
one year ago.
(Millions of Yen)
January, 2020

January, 2021

Synthetic resin sector

1,949

1,945-3Industrial materials sector

2,127

2,245118

Chemical products sector

1,530

1,634

103

Advanced materials sector

793

849

55

Electronic materials sector

930

1,015

85

Other products (foreign liquor)

85

79-5

7,416

7,770

353

Total

DifferenceWith respect to earnings during the period, operating income was 538 million yen, 36.4% up from the same period oneyear earlier, reflecting an increase of gross margin that resulted from higher net sales.
(2) Analysis of Financial Condition
Total assets as of the end of the consolidated first quarter under review were 38,997 million yen, up 1.5% or 559 million
yen from the end of the previous consolidated fiscal year. This mainly reflected an increase in notes and accounts
receivable-trade and electronically recorded monetary claims, and a decrease in cash and deposits.
Liabilities were 8,985 million yen, up 2.5% or 215 million yen from the end of the previous consolidated fiscal year, mainly
because of an increase in notes and accounts payable-trade, and a decrease in provision for bonuses and income tax
payable.
Net assets stood at 30,012 million yen, 344 million yen or 1.2% up from the end of the previous consolidated fiscal year.
This mainly reflected an increase in retained earnings and valuation difference on available-for-sale securities, and adecrease in total adjustment on net defined benefit.
As a result of the above changes, the equity ratio at the end of the consolidated first quarter under review
decreased by 0.2 point compared with the end of the previous consolidated fiscal year to 77.0%.
(3) Analysis of Future Forecast on Quarterly Consolidated Earnings Forecast
There are no revisions to the consolidated earnings forecast figures for the fiscal year ending in October 31, 2021 thatwere announced in the “Financial Results for the Fiscal Year Ended October 31, 2020 [Japan GAAP] (Consolidated)”released on December 14, 2020.

3

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet (First Quarter)(Thousands of Yen)
AssetsEnd of Previous YearEnd of First Quarter(October. 31, 2020)(January 31, 2021)

Current Assets
Cash and Deposits

11,857,553

11,614,737

Notes and Accounts Receivable-Trade

10,400,639

10,839,748

Electronically Recorded Monetary Claims

2,131,545

2,471,961

Merchandise and Finished Goods

2,605,708

2,526,498

Work in Process

1,684,070

1,819,099

Raw Materials and Supplies

1,066,944

989,586

Others

253,335

259,563

Allowance for Doubtful Accounts
Total Current Assets-60,767-59,547

29,939,029

30,461,647

4,722,504

4,724,974

Accumulated Depreciation-2,026,932-2,063,897

Buildings and Structures, Net

2,695,571

2,661,076

Machinery, Equipment and Vehicles

3,826,069

3,855,021-3,360,809-3,405,486

465,260

449,535Land

1,930,580

1,930,431

Others

1,071,431

1,089,651

Accumulated Depreciation-959,930-974,670

Others, Net

111,500

114,981

5,202,912

5,156,024

128,516

114,636

Investment Securities

1,227,085

1,318,771

Guarantee Deposits

398,405

398,650

1,473,503

1,486,719

Deferred Tax Assets

12,143

4,825

Others

79,027

78,914

Allowance for Doubtful Accounts-22,291-22,291

Total Investments and Other Assets

3,167,873

3,265,589

Total Noncurrent Assets

8,499,302

8,536,250

Total Assets

38,438,331

38,997,898

Noncurrent Assets
Property, Plant and Equipment
Buildings and Structures

Accumulated Depreciation
Machinery, Equipment and Vehicles, Net

Total Property, Plant and Equipment
Intangible Assets
Investments and Other Assets

Net Defined Benefit Assets4

(Thousands of Yen)
End of Previous YearEnd of First Quarter(October. 31, 2020)(January 31, 2021)

Liabilities and Net Assets
Liabilities
Current Liabilities
Notes and Accounts Payable-Trade3,004,198

3,616,415

Electronically Recorded Monetary Debt

2,150,419

2,186,162

Accounts Payable-Others

621,692

728,123

Income Taxes Payable

179,968

31,898Advances Received

201,993

305,948

Provision for Bonuses

1,231,975

478,313

Provision for Directors' Bonuses

61,555

16,569Allowance for Product Warranty

236,423

241,341

Others397,235

478,736

8,085,462

8,083,509

Total Current Liabilities
Noncurrent Liabilities
Provision for Directors' Retirement Benefits

5,460

5,460

Net Defined Benefit Liabilities

71,21973,498Deferred Tax Liabilities

607,445822,564

Total Noncurrent Liabilities

684,124

901,523

Total Liabilities

8,769,587

8,985,032

Capital Stock

1,061,210

1,061,210

Capital Surplus

1,483,410

1,483,410

Retained Earnings

27,107,252

27,360,706

Treasury Stock-363,977-363,977

Total Shareholders’ Equity

29,287,895

29,541,348

Accumulated Other Comprehensive Income
Valuation Difference on Available-for-Sale
Securities
Deferred Gains or Losses on Hedges

307,456

386,113-1,566866

Foreign Currency Translation Adjustment

92,854

105,645

Total Adjustment on Net Defined Benefit-17,896-21,108

Total Accumulated Other Comprehensive Income

380,848

471,516

Total Net Assets

29,668,743

30,012,865

Total Liabilities and Net Assets

38,438,331

38,997,898

Net Assets
Shareholders’ Equity5(2) Quarterly Consolidated Statement of Income & Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income (First Quarter)(Thousands of Yen)First Quarter Ended
January 31, 2020

First Quarter Ended
January 31, 2021

Net Sales

9,524,065

10,606,041

Cost of Sales

7,251,002

8,155,451

2,273,062

2,450,589

1,738,761

1,801,104

534,301

649,485

Interest Income

457

685

Dividends Income

12,04011,359Rent Income

1,792

1,829

－

8,125

7,356

6,921

21,64828,921

Interest Expenses

2,983

554

Commission Paid756

756

Sales Discount

1,657

1,553

Foreign Exchange Losses

7,230

－

Others3,254

484

Total Non-Operating Expenses

15,882

3,348

Ordinary Income

540,067

675,057－

23,927－23,927

540,067

698,985

Income Taxes-Current

7,005

11,810

Income Taxes-Deferred

177,293

189,252

Total Income Taxes

184,298

201,063

Net Income

355,768

497,922355,768

497,922

Gross Profit
Selling, General and Administrative Expenses
Operating Income
Non-Operating Income

Foreign Exchange GainsOthers
Total Non-Operating Income
Non-Operating Expenses

Extraordinary Profits
Profit on Sales of Investment Securities
Total Extraordinary Profits
Income before Income Taxes and Minority Interests

Net Income Attributable toOwners of the Parent

6

Quarterly Consolidated Statement of Comprehensive Income (First Quarter)
First Quarter Ended

First Quarter Ended

January 31, 2020

January 31, 2021

355,768

497,922-41,61478,657

Deferred Gains or Losses (-) on Hedges

462,433

Foreign Currency Translation Adjustment

60,16012,790Net Defined Benefit-4,584-3,212

Total Other Comprehensive Income

14,007

90,668369,776

588,590369,776

588,590

Net Income
Other Comprehensive Income
Valuation Difference on Available-for-sale Securities

Comprehensive Income(Breakdown)Comprehensive Income Attributable to Owners of theParent7

(3) Notes on Quarterly Consolidated Financial Statements(Note for premise of going concern)
There are no pertinent matters to report.
(Notes for significant changes in shareholder’s equity)
There are no pertinent matters to report.
(Segment information, etc.)[Segment information]
First Quarter Ended January 31, 2020
Information Pertaining to the Amount of Net Sales, Profit or Loss of Each Reporting Segment(Thousands of Yen)
Reported Segment
Machinery & Equipment
Business

Chemical Products
Business

２,107,131

7,416,934

9,524,065

9,524,065

----

Total

２,107,131

7,416,934

9,524,065

9,524,065

Segment Profit

139,389

394,911534,301

534,301

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales among
Segments or AmountTransferred

Total

Grand Total(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

First Quarter Ended January 31, 2021
Information Pertaining to the Amount of Net Sales, Profit or Loss of Each Reporting Segment(Thousands of Yen)
Reported Segment
Machinery & Equipment
Business

Chemical Products
Business

２,835,613

7,770,427

10,606,041

10,606,041----Total

２,835,613

7,770,427

10,606,041

10,606,041

Segment Profit

110,686

538,798

649,485

649,485

Net Sales
Net Sales to UnaffiliatedCustomers
Internal Net Sales amongSegments or AmountTransferredTotal

Grand Total(Note) The total amount of segment profit is identical to the operating income reported on the Quarterly Consolidated Statements of Income.

8